Bitcoin and ETF decoupling – Bitcoin Magazine: Bitcoin News, Articles, Charts and Guides

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The following is taken from a recent edition of Deep Dive, Bitcoin Magazine’s high-end market newsletter. To be among the first to receive this and other on-chain bitcoin market analysis straight to your inbox, subscribe now.

After a year of movements strongly correlated with corrections in the S&P 500 index, bitcoin has shown in recent days the start of a long-awaited decoupling point in an increasingly uncertain macro environment. Over the past few weeks, bitcoin has risen 34.86% while gold, the S&P 500 and the US Treasury’s market-weighted debt index with maturities of 20 years or more (TLT) remaining. were all in negative territory.

While a data point does not give us statistical evidence that this narrative is now the new normal, all market critics will be watching it today, as bitcoin shows life as an asset that can gain momentum. in the event of growing concerns and volatility in the markets. .

Source: trading view

During a period of great macroeconomic uncertainty, bitcoin’s price action is notable to say the least, with very clear vertical accumulation in the spot markets.

What makes bitcoin’s price action even more impressive is that it is happening at the same time as a decline in the expected production of gross domestic product around the world. Using the Atlanta Federal Reserve as an example, their estimate of GDP for the third quarter of 2021 fell from over 6.3% to 1.3% in just 70 days. The economic fuel for monetary and fiscal policies supplied to the market does not seem to have the same stimulating effects.

This is not a problem specific to the United States. For China, “Goldman Sachs cut China’s economic growth forecast for 2021 to 7.8%, from 8.2%, as energy shortages and sharp cuts in industrial production add” to downward pressure important “.

While it is true that bitcoin remains primarily an uncorrelated asset, during times of risk bitcoin has historically not been immune as the strength of the US dollar means weakness for the BTC / USD pair, c is why recent developments are so bullish.

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